Steel stocks are getting whacked after Trump expands tariff exemptions for 3 countries
- Steel stocks dropped after President Donald Trump announced that he was allowing the Commerce Department to grant "targeted relief" from quotas on imports from South Korea, Argentina, and Brazil.
- Steel stocks have been volatile this year amid Trump's tariff policies.
- Watch United States Steel, AK Steel and Steel Dynamics trade in real-time here.
Steel stocks are getting whacked in Thursday trading after President Donald Trump announced Wednesday the Commerce Department would "provide targeted relief" from quotas imposed on steel from South Korea, Argentina, and Brazil, and aluminum from Argentina.Here's the scoreboard:
"President Trump has once again shown his commitment to American workers and businesses, protecting our national security from the threat posed by steel and aluminum imports," Wilbur Ross, the Secretary of Commerce, in a press release.
"This proclamation provides the Department the same product exclusion authority for quotas that we already have for tariffs."
An existing exemption allows steel companies to apply for product-specific exclusions and avoid tariffs if US companies cannot meet their demand. Under Trump's new directive, companies can be granted quota exemptions but still have to pay a 25% tariff if they had ordered high volumes of steel prior to the quotas being enacted.
Steel stocks have been volatile this year under Trump's tariff policies.
Back in May, steel stocks surged after Trump reiterated his tough stance on imposing 25% and 10% duties on steel and aluminum imported from China, and expanded the tariff lists to US allies including European Union, Mexico, and Canada.Shares of United States Steel are down 23% this year; AK Steel's are down 31% and Steel Dynamics's are up 2%.